Wall St. higher on hopes of Greek debt deal

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U.S. Stocks Surge; Greece Submits New Reform Proposal


U.S. stocks rose on Friday on hopes that Greece will be able secure fresh funding to avert bankruptcy and allow it to remain in the euro zone.

All three major indexes were up more than 1 percent in morning trading, with the Dow Jones industrial average and S&P 500 in positive territory for the month.

Greece has made substantial concessions in its latest proposal to lenders, including tax hikes, in hopes of receiving $59 billion to help it cover debts until 2018.

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Wall St. higher on hopes of Greek debt deal
ATHENS, GREECE - JULY 13: Pensioners talk to bank staff as they wait to collect their pensions outside a National Bank of Greece branch in Kotzia Square on July 13, 2015 in Athens, Greece. Eurozone leaders have reportedly made an 'agreement' on the Greek debt crisis in Brussels. After lengthy talks EU President Donald Tusk tweeted that a bailout programme was 'all ready to go'. (Photo by Christopher Furlong/Getty Images)
A woman burns the flag of the ruling party Syriza, surrounded by journalists, in front of the Greek parliament in Athens, during an anti-EU demonstration in Athens calling for a no to any agreement with the creditors on July 13 , 2015. Eurozone leaders struck a deal on a bailout to prevent debt-stricken Greece from crashing out of the euro forcing Athens to push through draconian reforms in a matter of days. AFP PHOTO/ LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)
Leftist protester holds a greek flag in front of the Greek parliament as they take part an anti-EU demonstration in Athens calling for a 'NO' to any agreement with the creditors on July 13, 2015. Eurozone leaders struck a deal Monday on a bailout to prevent debt-stricken Greece from crashing out of the euro, forcing Athens to push through draconian reforms in a matter of days. AFP PHOTO / ANDREAS SOLARO (Photo credit should read ANDREAS SOLARO/AFP/Getty Images)
People read newspaper headlines in central Athens on July 13, 2015. Greece reached a desperately-needed bailout deal with the eurozone on July 13 after marathon overnight talks, in a historic agreement to prevent the country crashing out of the European single currency. The country's leftist Prime Minister Alexis Tsipras agreed to tough reforms after 17 hours of gruelling negotiations in return for a three-year bailout worth up to 86 billion euros ($96 billion), Greece's third rescue programme in five years. AFP PHOTO / ARIS MESSINIS (Photo credit should read ARIS MESSINIS/AFP/Getty Images)
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Euro zone finance ministers will meet on Saturday to decide on a third bailout for Athens.

U.S. markets fell sharply earlier in the week as concerns over a slowdown in China, a drop in commodity prices and the Greek debt crisis spooked investors.

"The markets are higher today because the combined pressure of Greece and China seem to have been elevated a little," said Mohannad Aama, managing director at Beam Capital Management in New York. "Greece isn't a done deal but the probability of a 'Grexit' is reducing."

Global markets were supported by a continued recovery in China's stock market, which rose strongly for a second day, helped by a barrage of government support measures.

At mid-week, panic selling had slashed a third of the value off Chinese markets since their peak in June.

Chinese Premier Li Keqiang said the country would make more targeted changes to its policies to support the economy and promised to increase the transparency of China's capital and money markets.

Investors will also look for clues on the timing of an interest rate hike in the United States when Federal Reserve Chair Janet Yellen speaks at a conference in Cleveland.

Yellen, scheduled to speak at 12:30 p.m. ET, will give her views on the prospects for U.S. growth, inflation and the job market.

"With the headline news earlier this week, it looked like December was more likely for a rate increase but any resolution to the Greece crisis will mean that September is back on the table," Aama said.

Data showed U.S. wholesale inventories rose at their fastest pace in six months in May.

At 10:45 a.m. ET the Dow Jones industrial average .DJI was up 138.33 points, or 0.79 percent, at 17,686.95, the S&P 500 .SPX was up 16.22 points, or 0.79 percent, at 2,067.53 and the Nasdaq composite .IXIC was up 45.36 points, or 0.92 percent, at 4,967.75.

All 10 major S&P 500 sectors were higher, with the telecommunications index .SPLRCL leading advancers with a 1.4 percent rise.

The U.S. quarterly earnings season kicked off earlier this week, with Pepsi (PEP.N) and Alcoa (AA.N) reporting better-than- expected sales. However, corporate earnings are estimated to have fallen 3.1 percent in the second quarter, according to Thomson Reuters data.

Barracuda Networks' (CUDA.N) shares slumped 20.7 percent to $31.02 after JPMorgan cut its price target on the data storage and security provider's stock.

Cablevision (CVC.N) jumped 7.7 percent at $26.75 on a Wall Street Journal report that French billionaire Patrick Drahi was looking at cable targets for acquisitions.

Zillow Z.N fell 5 percent to $80.99, a day after the company said its chief financial officer was leaving the company to pursue other business interests.

Advancing issues outnumbered decliners on the NYSE by 2,237 to 650. On the Nasdaq, 2,007 issues rose and 588 fell.

The S&P 500 index posted 11 new 52-week highs and 11 new lows, while the Nasdaqrecorded 54 new highs and 30 new lows.

(Reporting by Tanya Agrawal; Editing by Ted Kerr)

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